Ripple Chief Legal Officer Stuart Alderoty is backing the SEC’s proposed Regulation Crypto Assets framework, arguing that the agency finally has an opportunity to replace years of enforcement-driven uncertainty with clearer rules.
Alderoty said Ripple has filed a formal comment letter supporting the proposal and believes the SEC has the authority to adopt it.
His support comes after Ripple spent years fighting the regulator over XRP and more than $150 million seeking legal clarity.
Alderoty Says the Token Itself Is Not the Security
Alderoty’s central argument is that the proposal remains faithful to the Howey test.
“The investment contract is the security, not the token,” he wrote.
In his view, regulators should focus on what an issuer actually promised to buyers and when those obligations end, instead of relying on a more subjective decentralization test.
1/ Today Ripple filed its comment letter on the SEC’s proposed Regulation Crypto Assets. We support the proposal, and the SEC has clear authority to adopt it. 2/ Years of “case by case, coin by coin” enforcement has pushed innovation offshore. We need holistic rules for digital assets. 3/ The proposal stays faithful to Howey. The investment contract is the security, not the token. What matters is what an issuer actually promised and when those promises end, not a subjective “decentralization” test. 4/ We know the cost of ambiguity firsthand. Ripple spent more than $150 million to get clarity. No company should have to do that to learn what the law requires. 5/ Clear rules grounded in existing law will bring capital, investor protection and innovation to the U.S. Read our full letter: https://t.co/hOCJJwUo7Z
— Stuart Alderoty (@s_alderoty) October 20, 2026
That position closely reflects one of the most important legal arguments Ripple advanced during its SEC case.
Alderoty also criticized the regulator’s previous “case by case, coin by coin” approach, saying years of enforcement uncertainty pushed crypto innovation offshore and forced companies to spend heavily simply to understand what the law required.
“We know the cost of ambiguity firsthand,” he said, pointing to Ripple’s legal bill of more than $150 million.
Ripple now wants a broader framework that applies consistently across the digital-asset industry.
Alderoty argued that clearer rules grounded in existing securities law could improve investor protection while making the U.S. more attractive for crypto companies and capital.
The filing is notable because Ripple spent years in direct conflict with the SEC.
Its decision to support the agency’s latest proposal shows that the company’s position is not opposition to regulation itself, but opposition to unclear rules enforced retroactively through litigation.
Read also: XRP Finally Gets Its Own Official X Account (Ripple Is Behind It)
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